could you please provide the solution and the equation to get the answer. thank

Question

could you please provide the solution and the equation to get the answer. thank you in advance

a. Prepare a productio v b. Prepare a purchases budget, in dollars, for direct materials for each of the first three months of the year etro, Inc., produces a single product. The projected sales for the first month of the coming year and the beginning and ending inventory data are as follows: Sales Unit price Beginning inventory Desired ending inventory 80,000 units $12 6,000 units 9,000 units Each unit requires three pounds of material costing $2 per pound. The beginning inventory of raw materials is 2,500 pounds, and the company wants to have 4,500 pounds of material in inventory at the end of the month. Each unit requires one hour of direct labor time, which is billed at $8 per hour. equired: a. Prepare a production budget for the first month Prepare a direct materials purchases budget for the first month.

Explanation / Answer

a) production budget Expected sale units 80,000 add:Desired ending inventory 9,000 total needs 89,000 less :Desired beginning inventory 6,000 Production required 83,000 b) direct materials purchase budget production required 83,000 pounds required per pound 3 total pounds needed 249000 add ending inventory 4,500 total need 253500 less beginning inventory 2,500 materials required 251,000 cost per pound 2 materials cost 502000

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